Business
Cash-strapped Treasury to absorb USD 510 million liabilities from debt-ridden SriLankan Airlines
By Sanath Nanayakkare
The bidding process for disposing of Sri Lankan Airlines has been postponed with a new programme aimed at reducing the debt-ridden airline’s debt pile by about half with the help of the cash-strapped Treasury.
Accordingly, the bidding process for divestiture of the SriLankan Airlines which was to be concluded yesterday has been extended by another 45 days.
Addressing a press conference in Colombo yesterday, Shipping and Aviation Minister Nimal Siripala de Silva said that President Ranil Wickremasinghe as finance minister has agreed to the proposals made by him to ease the debt burden on the Airline with the help of the Treasury to make it more attractive for prospective buyers including airlines and investors.
“IFC – a member of the World Bank Group which advises us on the restructuring of the Airline has told us that under the current debt strain, SriLankan would not lure the right kind of prospective buyers. So, we have decided to reduce its debt pile and make it a more attractive offer for investing,” he said.
“The President as finance minister agreed to get the Treasury to absorb USD 510 million worth of SriLankan Airline’s debt payable to Ceylon Petroleum Corporation, the Bank of Ceylon and the People’s Bank in the next six months. This amounts to half of the Airline’s total debt quantum. The Cabinet approval was given on Monday to select a suitable investor for SriLankan under these less-stressed financial conditions because it would then be a more conducive investment in the eyes of potential investors,” he said.
The minister, however, noted that the funds received by SriLankan from the Treasury would have to be repaid from the earnings of its profitable arms such as Ground Handling, Catering and Engineering.
“The Treasury will be providing about USD 60-70 million to the Airline in the next six months for engine repairs and related activities. We will ensure that Treasury funds thus given to the Airline would be recovered though the proposed mechanism because we can’t pass it on to the taxpayers like in the past,” he said.
“These moves have been taken not only to make SriLankan Airlines attractive to potential investors but also to safeguard the job security of 6,000 employees working for the Airline. We are confident that with the Airline’s debt halved, it would attract more bidders when bidding reopens.”
“Further, I have given directives to the Airline to give no one any new perks, salary hikes or unnecessary foreign tours in the next six months to consolidate its financial discipline. I think I will get the support of the employees and the trade unions in this exercise,” he said.
Business
AAC looks towards a future of vertical mobility in Sri Lanka
The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).
AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.
Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.
“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.
Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.
International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.
For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.
For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.
AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.
The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.
Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.
As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.
Business
Vietjet Air announces Colombo – Ho Chi Minh City route
Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.
This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.
The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.
Business
SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing
SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.
The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.
The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.
In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.
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